Definition of Rural Marketing?

Rural marketing is a process of developing, pricing, promoting, and distributing goods and services leading to the desired exchange with rural customers to satisfy their needs and wants, and also to achieve organizational objectives.

Types of Rural Marketing

  • Urban to Rural: The products manufactured in cities such as FMCG products, fertilizers, consumer durables, etc. are made available in remote areas. This is termed urban to rural marketing.
  • Rural to Urban: The goods manufactured or grown in rural areas or villages, including crops and other agricultural products, handicraft items, pottery products, etc. are sold to the consumers of urban areas. It is known as rural to urban marketing.
  • Rural to Rural: Manufacturer sells products like cattle, pottery, carts, etc. to other villages, it is called rural to rural marketing.

Characteristics

  • Low Standard of Living.
  • Large and Scattered Market.
  • Agriculture is a Major Source of Income.
  • Seasonal Demand.
  • Low rate of Literacy.

Rural marketing

Challenges of Rural Marketing

  • Promotion and Communication: The companies need to re-structure the promotion and strategies for the goods or services for the rural markets keeping in mind their multiple features.
  • Physical Distribution: Due to the improper infrastructure, many villages lack connectivity and transportation, which ultimately acts as a hurdle in the allocation of goods or services to the consumers of these areas.
  • Understanding the Rural Consumer: The rural consumers are quite conservative, traditional, and cultural, which is reflected even in their demand for goods or services. Therefore, it is difficult to understand their preference and taste.
  • Poor Infrastructure: As we know that there is inadequate infrastructure, i.e. no roads, buildings, transportation, electricity, network connectivity, and water supply, which restricts the companies to penetrate these markets.
  • Channel Management: The planning of marketing channels and supply chain management needs a lot of research and expertise since it helps the company to capture the potential rural markets.
  • Inappropriate Media Reach: Rural people are gradually adopting new means of entertainment and knowledge such as television. Still, there are many houses in remote areas which are not updated with the media sources. Thus, hampering the companies’ communication with the villagers.

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